The Fed put themselves in a terrible spot by not defining the timeline for inflation to be transitory. Now their only choice to try and slow CPI is to destroy asset prices (which will do little to solve import prices). Their choice to aggressively raise rates is akin to telling those complaining of high prices to simply not buy anything--killing demand to stop price increases.
The Fed put themselves in a terrible spot by not defining the timeline for inflation to be transitory. Now their only choice to try and slow CPI is to destroy asset prices (which will do little to solve import prices). Their choice to aggressively raise rates is akin to telling those complaining of high prices to simply not buy anything--killing demand to stop price increases.
Momma don’t let your babies grow up to be MMTers.
Another excellent write-up!